According to the CoreLogic, in the past few years Connecticut homeowners have faced a large number of foreclosure proceedings situation, but now a slight improvement can be seen in the number of homeowners proceedings for their foreclosed properties which from September 2015, got down more than a quarter until now.
In the last few years, the risk of rising foreclosures had badly affected the minds of homeowners, lenders and overall the housing market in the US. Not only this the rental market was also getting affected due to increased demand for rental homes by people displaced as a result of their home foreclosure. Connecticut homeowners falling in the lower income category faced numerous challenges when searching for affordable rental housings.
Foreclosure crisis displaces both the landlord and tenant. The direct economic cost associated with it is traveling expenses, loss of renter’s advance payment and security deposits. It often leads to other non-financial difficulties such as physical health issues, emotional disability, especially for elderly people and children.
National data concludes that foreclosure crisis also leads to increase crime rates. Those who aren’t affected by foreclosure are often targeted by the affected one. The risk of theft, burglary or vandalism will rise during the foreclosure season.
It is obvious how foreclosure affects home values in these two ways. First, it reduces the value of foreclosed home itself. Second, the neighborhood property values are also affected due to the foreclosed property in the locality. “It depresses neighborhood homeowners.”
The foreclosure of about 2,450 homes in Connecticut has been completed by lenders, until September 2016, which is more than 4,800 foreclosures in the last 12-month, through September 2015. Whereas, when compare foreclosure proceedings, September 2016 gives us a rate of 1.4 percent, down from the August 2016 rate 1.5 percent and 1.9 percent when compared with last year, tracked by CoreLogic.
The states recorded the highest with homes under foreclosure are New Jersey and New York, gives a percentage of 3 and 2.7 respectively. Whereas, Colorado is recorded as the healthiest market, giving 0.3 percent of foreclosure rates. The New Hampshire wins the race of Northeast foreclosures by 0.5 percent rate recorded.
The state also saw improvements in foreclosure situations, the risk of mortgage payment delinquency at 3.5 percent in September and 2.6 percent nationally.